Charting Your Path to Financial Success
April 20-22, 2015
Patricia Lawrence, CMA
Principal & Consulting CFO
©2015 Turbo Execs LLC
Outline
 Building Your “Dream Team”
 The Business Life Cycle
 The Fundamentals
 Budgeting for Success
 It’s a Cycle
 Taking Control of Your Destiny
 Wrap-up
 Bonus Materials
©2015 Turbo Execs LLC
Your Business Dream Team
 Allows you to focus on what you do best
 Focused on your best interests – “got your back”
 Complements your strengths
 Covers your weaknesses or skills gaps
 Accountability partners
 Outsourced for maximum cost-efficiency
 Advisory Board
 Examples – legal, IT, accounting, marketing
©2015 Turbo Execs LLC
What is a CFO?
 Chief Financial Officer
 High caliber financial professional
 Leads financial & managerial activities
 Sets policies
 Strategic thinker
 Strong business sense
 Operational focus
©2015 Turbo Execs LLC
Qualifications of a CFO
 Undergraduate degree
 Graduate degree
 Certification
 10+ years senior management experience
 Background in financial management
 Leadership, communication, presentation and analytical
skills
©2015 Turbo Execs LLC
Why Do I Need a CFO?
 Decision support
 Accountability
 Be prepared
 Complexity of business
 Plan & navigate growth
 Fresh perspective
 Been there, done that
©2015 Turbo Execs LLC
Duties of a CFO
 Strategy
 Financial Management & Control
 Financial Reporting & Analysis
 Key Performance Indicators
 Planning & Budgeting
 Risk Management & Mitigation
 Accountability Partner
©2015 Turbo Execs LLC
A CFO for Your Business
 Part-time, budget-friendly option
 Ongoing, on call, as needed
 Augments existing accounting staff
 Analytical expertise
 Problem solver
 Rapid acclimation, fast results
 Accountability partner
©2015 Turbo Execs LLC
Life Cycle of a Business
©2015 Turbo Execs LLC
Life Cycle of a Business
•
•
•
•
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CHALLENGES
managing cash reserves
managing sales expectations
accounting management
establishing customer base
establishing market presence
• you’ve decided to pursue a business idea
• product and/or services are determined
• need to learn & adjust business model to ensure profitability
©2015 Turbo Execs LLC
Life Cycle of a Business
•
•
•
•
•
•
•
•
CHALLENGES
dealing with increasing sales
dealing with increasing
customers
increasing market competition
moving into new markets
effective management
adding new products/services
expanding existing business
accounting management
•
•
•
•
©2015 Turbo Execs LLC
business consistently generating revenue
cash flow opens new opportunities
fine-tune business model
expand to new markets/channels
Life Cycle of a Business
•
•
•
•
•
•
CHALLENGES
increasing market competition
moving into new markets
adding new products/services
expanding existing business
exit strategy
accounting management
• dominating market presence
• still growing, but not at an explosive rate
• step back and re-assess growth options
©2015 Turbo Execs LLC
Life Cycle of a Business
•
•
•
•
•
CHALLENGES
avert stage by innovating
rejuvenate product line
protect cash flow
exit strategy
accounting management
•
•
•
•
©2015 Turbo Execs LLC
business fail here
decreasing sales, plunging profits
survival mode, cut losses, exit business
search for new opportunities & business ventures
Life Cycle of a Business
CHALLENGES
• starting over – YIKES!
• insolvency
• bankruptcy
• business has no value
©2015 Turbo Execs LLC
Life Cycle of a Business
•
•
•
•
•
CHALLENGES
re-gaining traction in market
re-building sales
re-invigorating employees
rebuild equity value
re-formulate exit strategy
©2015 Turbo Execs LLC
•
•
•
•
•
successful turnaround effort
financial restructuring
new leadership
strategic focus
process improvements
Basic Financial Intelligence
Understanding What’s Important to the
Organization, What the Numbers Mean, and How
to Link Them
 Owning Your Numbers
 Understanding Your Numbers
 Impacting Your Numbers
©2015 Turbo Execs LLC
Basic Financial Intelligence
Owning Your Numbers
 Your transactions are entered into your system by your
employee in real time
 Your company’s financial status is available to you on-
demand
 Successful companies don’t outsource basic record-keeping
function
 Take control of your destiny!
©2015 Turbo Execs LLC
Basic Financial Intelligence
Understanding Your Numbers
 You need to know what is a “good” number and what is a
“bad” number
 Your company’s financial status is available to you on-
demand…use it to educate yourself.
 Look at your trends and comparisons versus benchmarks.
 Take control of your destiny!
©2015 Turbo Execs LLC
Basic Financial Intelligence
Impacting Your Numbers
 Do you know what to do about a “bad” number?
 Your company’s financial status is available to you on-
demand…use it to drive your business.
 What levers are available to you to dial-up/dial-down?
 Take control of your destiny!
©2015 Turbo Execs LLC
Budgeting Your Business
 What is it?
 Why do it?
 How is it done?
 Who me?
 Now what?
©2015 Turbo Execs LLC
Budgeting…What is it?
 Roadmap
 Quantifies goals
 Provides control
 Promotes measurement
 Reduces risk
 Enables faster decision making
©2015 Turbo Execs LLC
Budgeting…Why do it?
 Plan for the future
 Cash flow management
 Secure financing
 Respond to unexpected changes
 Evaluate performance
 Track & monitor waste
©2015 Turbo Execs LLC
Budgeting…How is it done?
 Past performance
 Revisit previous budgets
 Do research
 Keep it simple
 Make it measurable
 Make it impactful
©2015 Turbo Execs LLC
Budgeting…Who, me?
 Targets
 Strategy
 Grow, divest, exit
 Controllable variables
 Renegotiation
 Pulling it all together
©2015 Turbo Execs LLC
Budgeting…Now what?
 Measure and manage
 Reassess and learn
 Question expenses
 Better, faster decisions
 Respond to unexpected changes
 Updates/forecasts
©2015 Turbo Execs LLC
It’s a Cycle
Measure
Coach
Course
Correct
©2015 Turbo Execs LLC
Monitor
Analyze
It’s a Cycle
Measure
Monitor
 “What getsCoach
measured gets managed”
 Measure what’s important
 Communicate to the organization
Course
Correct
©2015 Turbo Execs LLC
Analyze
It’s a Cycle
Measure
Coach
Monitor
 Monitor = paying attention regularly
 Compare against benchmarks & targets
Course
 Emerging trends?
Correct
©2015 Turbo Execs LLC
Analyze
It’s a Cycle
Measure
Coach
Monitor
 Calculate variances
to the benchmark
 Ask “why?”
 Determine root cause
Course
Correct
©2015 Turbo Execs LLC
Analyze
It’s a Cycle
Measure
Coach of issues
 Fix root causes
Monitor
 Practice abstinence
 Trial & error
Course
Correct
©2015 Turbo Execs LLC
Analyze
It’s a Cycle
Measure
Coach
Monitor
 Explain changes to employees
 Explain why it’s important
Course
 Encourage empowerment
Correct
©2015 Turbo Execs LLC
Analyze
Roadblocks to Profitability
Owners, managers & employees don’t know, see, hear, trust
or care.
 Ensure you have the systems to know
 See where you want to go and have a plan to get there
 Hear what your customers, vendors, lenders &
employees have to say
 Develop an atmosphere of mutual trust
 Determine if your employees care about your objectives
©2015 Turbo Execs LLC
Strategies for Growth
 Maximize cash flow from operations
 Sell more to existing customers
 Attract new customers with increased marketing Return






on Investment (ROI)
Expand sales channels
Enter new markets
Introduce new products or services
Introduce new technology to your business
Vertical (supplier) or horizontal (competitor) integration
Create partnerships with other businesses
©2015 Turbo Execs LLC
Taking Control of Your Business
Leadership:
 Don’t be a control freak
 Empower your employees
 Coach employees to motivate & change behaviors
 Get help in small doses
 Delegate
 Take charge positively
©2015 Turbo Execs LLC
Taking Control of Your Business
Sales:
 Innovate
 Focus on the customer experience
 Train your most important resource – your employees!
 Explore new opportunities & business ventures
 Know your most profitable customers & products/services
 SWOT analysis
©2015 Turbo Execs LLC
Taking Control of Your Business
Materials & Supplies:
 Have you shopped around lately?
 Payment terms
 Are you buying more than last year (are you growing)?
 What % of your price covers materials & supplies?
 What is going on in the industry?
 Technology impacting cost?
©2015 Turbo Execs LLC
Taking Control of Your Business
Overhead:
 Have you shopped around lately?
 Payment terms
 Which are fixed vs variable? Can you convert to variable?
 Do you have unmitigated risk exposure?
©2015 Turbo Execs LLC
Taking Control of Your Business
Labor:
 What % of your price covers labor?
 What is going on in the industry?
 Technology impacting cost?
 Is your labor cost on autopilot?
 What is fixed vs variable? Can you convert to variable?
©2015 Turbo Execs LLC
What’s Your Path?
 Adding financial expertise to your “A-Team”
 Know where you are on “the curve”
 Instill the fundamentals with your team
 Get yourself a roadmap
 Make it a habit
 Grab the reins
 Destination….success!
©2015 Turbo Execs LLC
About the Presenter
Patricia I. Lawrence, CMA – Principal, Turbo Execs
Patty works with results-oriented small and medium business owners who are struggling with
financial chaos, such as out-of-control growth, sudden terrifying decline in revenues or profits, or
people problems that are having a negative impact on the business.
She reveals the “story behind the numbers” with financial tools and systems that quickly skyrocket
productivity and remove barriers to growth and profitability. As a result, her clients typically
increase the bottom line by at least 15% and feel in control of their finances and results.
Patty got her first taste of entrepreneurial life in the office of her father’s well drilling business in
her teens. With her first accounting class in high school, she’d found the professional outlet for
her problem-solving skills.
In her free time, Patty enjoys playing competitive tennis. Her husband and two sons hope she’ll
renew her old passion for baking again soon.
patty@TurboExecs.com
©2015 Turbo Execs LLC
(717) 917-0342
About TurboExecs
Driving Companies Toward Profitable Growth through:
• Empowering Financial Systems
• Eliminating HR Headaches
• Engineered for Profits
• Additional Executive Horsepower
In the midst of chaos, TurboExecs get things back on track
and put you in the driver’s seat. With more management
horsepower for your business – when you need it.
©2015 Turbo Execs LLC
Bonus Materials
 Understanding Financial Statements
 Income Statement
 Balance Sheet
 Cash Flow (cash flow vs profit, cash cycle)
 Additional Reports
 Analyzing Financial Statements
 Ratios
 Performance Metrics
©2015 Turbo Execs LLC